Following the agreement, the company will construct a solar power project on State Trust Land in Luna County, a move that would create 300 jobs.
As per the agreed terms, the electricity generated at the Macho Springs solar power plant will be sold to El Paso Electric Power for 20 years.
The clean energy generated at the plant will be enough to power around 18,000 average New Mexico homes, and the plant would reduce 40,000 metric tons of CO2 emissions.
Commenting on the deal, State Land Commissioner Ray Powell said the solar project will provide a constant stream of revenue for public schools, universities and hospitals in the region, apart from creating 300 construction jobs.
"This project will provide clean, efficient solar power to El Paso Electric service territory customers, and the lease payments could generate as much as $40 million for state land trust beneficiaries over the 40-year term of the lease," Powell added.
